Dr Kashefi Pour’s AIM Market Study Earns National Recognition from FCA

Birmingham Study Recognised for Advancing UK Financial Sector Insights

In a notable affirmation of academic excellence and policy relevance, the University of Birmingham has been named one of six winners in the Financial Conduct Authority’s (FCA) inaugural Economic Research Competition. This prestigious award recognises innovative research that contributes to a more inclusive and informed dialogue on UK economic growth, competitiveness, and financial regulation.

Launched in November 2024, the competition attracted 43 submissions from 41 organisations, including prominent universities, think tanks, and consultancies. The University of Birmingham’s winning project, led by Dr Eilnaz Kashefi Pour, received £30,000 in funding and focused on the financial needs and survival prospects of newly listed firms on the London Stock Exchange, comparing the Alternative Investment Market (AIM) with the Main Market. Dr Kashefi Pour expressed her gratitude and enthusiasm for the opportunity to contribute research that could help shape the future of the UK’s financial services sector.

Professor Edgar Meyer, Dean of Birmingham Business School, commended Dr Kashefi Pour’s achievement, describing her research as both innovative and impactful. The study revealed that AIM-listed firms, particularly smaller or closely held ones, face greater survival challenges post-IPO, whereas Main Market firms with stronger financials and broader investor appeal are more likely to remain listed. Furthermore, the research highlighted that favourable economic conditions and low interest rates significantly enhance company survival and fundraising, with AIM firms being especially sensitive to these factors.

Importantly, the study concluded that the principal challenge for listed firms lies not in the listing itself but in sustaining growth thereafter, as limited access to follow-on funding often results in delisting. Dr Kashefi Pour noted that the findings do not yet reflect the impact of the FCA’s 2024 reforms and emphasised the need for further research to evaluate their long-term effects. To address these challenges, the research proposed several policy interventions, including co-investment schemes to encourage long-term investment, mandatory capital runway disclosures to support investor decision-making, and IPO readiness programmes to better prepare firms for public markets.

While AIM continues to support innovation and entrepreneurship, its firms remain more vulnerable to economic volatility. Dr Kashefi Pour stressed the importance of evolving regulatory frameworks to improve access to capital, enhance transparency, and strengthen the UK’s global competitiveness. The FCA launched the competition to generate fresh insights into the financial sector’s key challenges and to foster informed debate on economic growth. Chief Economist Kate Collyer welcomed the innovative proposals and affirmed the FCA’s commitment to working with participants to explore how regulation can enable sustainable progress. This recognition reflects the University of Birmingham’s growing influence in shaping evidence-based policy and advancing financial sector resilience.

Editor’s Note:

The University of Birmingham’s success in the FCA’s inaugural Economic Research Competition highlights the critical role of academic insight in addressing real-world financial challenges. Dr Eilnaz Kashefi Pour’s research, which examines the survival prospects of newly listed firms on the London Stock Exchange, sheds light on the structural and economic hurdles these companies face post-IPO. By comparing the performance of firms on AIM and the Main Market, the study reveals how factors such as profitability, insider ownership, and broader economic conditions influence long-term viability. The findings point to the urgent need for improved access to follow-on funding, greater transparency, and targeted support to help firms thrive after listing. In response, the research proposes practical policy interventions, including co-investment schemes, capital runway disclosures, and IPO readiness programmes recommendations that align closely with the FCA’s goals of fostering inclusive economic growth and smarter regulation. The FCA’s recognition of this work affirms the value of evidence-based policy and the importance of supporting innovation within the UK’s financial ecosystem.

As per Skoobuzz, the University of Birmingham demonstrates academic excellence and growing influence in policy dialogue. Partnerships between institutions, regulators, and researchers are vital for a resilient and competitive UK financial future amid evolving economic pressures.